Final answer:
Title insurance protects against unknown defects in the title, not known defects, which should be disclosed by the seller prior to the sale. Warranties or service contracts can be purchased to cover certain issues post-sale. The given statement is false.
Step-by-step explanation:
The statement that title insurance can protect the buyer against certain known defects is False. Title insurance is actually designed to protect against unknown defects in the title that may arise after a property has been purchased, such as undiscovered liens, errors in public records, or other issues that can affect the property's title.
Known defects should be disclosed by the seller before the sale and are typically not covered by title insurance. It's important to keep in mind the Latin phrase Caveat emptor, meaning 'let the buyer beware,' which reminds buyers that they are responsible for checking the quality and suitability of goods before a purchase is made.
To further safeguard their interests, buyers may consider warranties or service contracts, which imply a promise by the seller to fix or replace certain issues that might arise within a set period after the purchase. The given statement is false.